In a statement, Sinema said Democrats had “agreed to remove” a key tax policy targeting wealthy investors that aimed to address what is known as the “carried interest loophole.”
Many corporate executives, including Arizona business leaders, had petitioned Sinema to consider the consequences of the tax in recent days.
Biden hailed the development, describing it in a statement late Thursday as a “critical step toward reducing inflation and the cost of living for America’s families.”.
“I look forward to the Senate taking up this legislation and passing it as soon as possible,” the president said.
Even Republicans at one point sought to seize on the uncertainty, urging Sinema to buck her own party.
Any change to assuage Sinema threatened to reduce the roughly $300 billion expected to be available for deficit reduction, a major issue for Manchin.
The exact details of the change is not clear, but Sinema said in a statement that her agreement would “protect advanced manufacturing.”. »